Welcoming the decisions taken by the Reserve Bank of India’s central board, veteran banker Uday Kotak on Wednesday said they would have a positive impact on the economy.

“I am very happy that there are positive outcomes, which will ultimately help the economy. I am glad that the board had a debate and I respect the judgement of the board,” Kotak, Managing Director and CEO, Kotak Mahindra Bank, told reporters on the sidelines of a CII conference.

In a meeting that lasted for more than nine hours on Monday, the central board of the RBI took a number of decisions. It has decided to set up a committee to examine the economic capital framework (ECF) of RBI, and also referred the issue of relaxing prompt corrective framework for weak banks to the Board for Financial Supervision of the RBI.

Earlier, while delivering his speech, Kotak, who is also President-Designate, CII, said the importance of the role of boards in ensuring long-term leadership and succession plan will continue to increase.

He also underlined poor risk management as one of the biggest challenges in the financial sector, which, he said, has led to poor practices in financial management and accounting.

comment COMMENT NOW